HSBC filed a complaint for ULP in the Arbitration Branch of the National
Labor Relations Commission (NLRC). and
(b) separation pay equivalent to one-half (1/2) month salary for every year of service up to
1993. No. The continued concerted actions impelled HSBC to suspend the
negotiations on March 19.. The
following day. and HSBC effective April 1.
SO ORDERED. and directed the remand of the case to the
Labor Arbiter for further proceedings. the Court affirmed the disposition of the NLRC. Ltd. The Labor Arbiter's
decision was appealed to the NLRC whose disposition to remand the case to the Labor Arbiter for further
proceedings was in turn assailed. notwithstanding that both sides had meanwhile started the re-negotiation of the economic
provisions of their CBA on March 5. 1993. National Labor Relations Commission and The Hongkong & Shanghai Banking
Corporation. 00-04-02481-93. 125038 entitled The Hongkong & Shanghai Banking
Corporation Employees Union v. The JEP consisted of a job designation per grade level with the accompanying salary scale
providing for the minimum and maximum pay the employee could receive per salary level. The Union's concerted activities
persisted for 11 months.m. HSBC announced its implementation of a job evaluation program (JEP) retroactive to
January 1. The majority of the members of the Union voted in favor of a strike. et al. 1995 for the
representational aspect. HSBC responded by
insisting that the JEP was an express recognition of its obligation under the CBA. 1993. petitioner Hongkong & Shanghai Banking Corporation Employees Union
(Union) was the duly recognized collective bargaining agent of the rank-and-file employees of respondent
Hongkong & Shanghai Banking Corporation (HSBC). and effective April 1.HSBC Employees Union. 1990 until March 31.
Also under review is the resolution promulgated on December 9.
Due to the sustained concerted actions.
On December 22. A collective bargaining agreement (CBA) governed the
relations between the Union and its members. 1990 until March 31.R. the
first person hired under the JEP. the Union served its letter on HSBC in protest of the continued implementation of the JEP. at around 12:30 p.
1993 for the non-representational (economic) aspect. and
insisted that HSBC's modification of the salary structure under the JEP constituted ULP. the Union informed HSBC that it would exercise its right to concerted action. 1993. which it labeled as an unfair labor practice (ULP).
On the same day of January 22. 1993. 1993. 1993. entry
level pay rates and the individual pays depending on the length of service. No. v NLRC et al.
The Union conducted a strike vote on December 19. the Union's officers and members walked out and gathered outside
. By letter dated January
20. the Union demanded the suspension of the JEP. 156635 2 of 16
and Maida Militante:
(a) full backwages from the time of their dismissal in 1993 up to the time this decision
becomes final. The CBA included a salary structure of the employees comprising of grade levels.
Antecedents
In the period material to this case. the Union members started picketing during breaktime while wearing black
hats and black bands on their arms and other appendages. 1993.. 1993. 2002 whereby the CA denied the petitioners'
motion for reconsideration.R. docketed as NLRC-NCR Case No. In
another letter dated January 22. Ultimately. on one hand. In its letter dated January 25. warnings and reprimands to remind the members of the
Union to comply with HSBC's Code of Conduct. G. in G. and to issue memoranda.
On January 18. 1993. 1993 after HSBC accorded regular status to Patrick King.

A meticulous review of the testimonies given during trial and a comparison of the same show
that 25 respondents were not named by complainant's witnesses. Calangi and Nicolas) have already settled
with the complainant during the pendency of the appeal.00 each. Gaba. Castro. Consistent with prevailing jurisprudence and in the interest of social justice. v NLRC et al. The Union.
3. one respondent is a
union officer (Rivera) while the remaining 18 respondents (Molo. that as per the submission of the parties. Salvacion.
xxxx
Only insofar as the xxx 18 respondents are concerned. 156635 4 of 16
Fermin. and Virgilio Reli.HSBC Employees Union. the consequences for their acts must nevertheless be tempered with some sense of
compassion.
Consistent with decided cases.
Of the 25. Gerong. specifically to the amount of P5. G.e. Orlina. We.
All the other claims for moral and exemplary damages are denied for lack of merit. and pronounced the dismissal of the 18 Union members
unlawful for failure of LISBC to accord procedural due process to them. Article
264[e]). Del Rosario.
More was expected from complainant and its observance of due process may not be dispensed with no
matter how brazen and blatant the violation or its rules and regulations may have perceived. We rule that complainant did fail to give them
sufficient opportunity to present their side and adequate opportunity to answer the charges against them.
SO ORDERED.
. Herrera.000.
Decision of the NLRC
On appeal. Dizon.000. Dacumos. these respondents are entitled only to indemnity for complainant's
omission. Ellarma.R. We take note of the fact that they have
remained silent spectators. viz. in the illegal strike and illegal acts committed by the
other individual respondents. Mundo
and Militante) are neither officers nor members who have been pinpointed as having committed illegal
act[s]. et al. 6 of them (Rabuco. Of the remaining 19.:
xxx [W]e note. The twin
requirement of notice and hearing in termination cases are as much indispensable and mandatory as the
procedural requirements enumerated in Article 262 of the Labor Code. Flores. and since the grounds for which they have been terminated do not involve
moral turpitude. Loquellano. however. Deriada. and only as regard these 18 respondents. We find the
award of separation pay to each of the 18 respondents equivalent to one-half (1/2) month salary for
every year of service as equitable and proper. therefore. its officers and members are hereby held jointly and severally liable to pay
the Bank the amount of P45. In this case.00 as actual damages.. if not mere bystanders. the NLRC modified the ruling of LA Pati. disagree with the Labor Arbiter's generalization that these 18 respondents have
similarly lost their employment status simply because they participated in or acquiesced to the holding
of the strike.
Contrary however to respondents' insistence that complainant failed to observe due process in the case
of the 18 respondents does not mean that they are automatically entitled to backwages or reinstatement. xxx
As a final word. not all the respondents (members)
have been identified by complainant as having violated the law on free ingress and egress (i. Fajardo. Atienza. Motus. We cannot construe
complainant's notice to return-to-work as substantial compliance with due process requirement. No.
Luna. Paule.

Francisca del Mundo. Flores. Rosario A. et al. namely:
I
THE COURT OF APPEALS COMMITTED SERIOUS ERROR OF LAW IN HOLDING THAT ALL
THE PETITIONERS WERE VALIDLY DISMISSED
A
The Court of Appeals cannot selectively apply the right to due process in determining the validity of
the dismissal of the employee
B
The refusal to lift the strike upon orders of the HSBC is not just cause for the dismissal of the
. Ma. No.000. through the assailed judgment promulgated on January 31.
Hence.
Mercedes Paule. National
Labor Relations Commission. Ruben Atienza. Luna.
Melo Gaba.
Issues
The remaining petitioners raise the following grounds in support of their appeal. Orlina. Victoria Luna.
The Court granted all the motions to withdraw. Fe Esperanza Gerong.
Pending the appeal. Antonio del Rosario.
SO ORDERED. deleted the award of
indemnity. Rosario Flores. the decision dated 26 August 1998 is hereby AFFIRMED with the modification that
complainant is ordered to pay (a) P5. this appeal by petition for review on certiorari. Ma.
Samuel Ellarma. the Court ruled that an employee who
is dismissed. Manuel Herrera. Binche Motus.00 and (b) one-half (1/2) month salary for every year of
service up to December 1993 to each of the following respondents: Isabelo Molo. hence. and in case the dismissal was without just or valid cause. the CA. Francisca del Mundo and Maida Militante. petitioners Elvira A. where the requirement of notice and hearing was not complied with. and denied HSBC's motion to delete the award of
backwages.
Judgment of the CA
On certiorari. NLRC and Isetcmn Department Store xxx. 2002.R. this adjudication relates only to the remaining petitioners.
On motion for reconsideration. but ordered HSBC to pay baekwages to the 18 employees in accordance with Serrano v. and Ruben Atienza separately presented motions to withdraw as
petitioners herein by virtue of their having individually executed compromise agreements/quitclaims with HSBC. In the case
at bar.HSBC Employees Union. Nelia Deriada. the
backwages shall be computed from the time of his dismissal until his actual reinstatement. 156635 5 of 16
XXXX
WHEREFORE. Victoria C.
when the dismissal was for cause. Fe
Esperanza Gerong. but the NLRC denied their motion. Malou Dizon. the CA reiterated its judgment. Elvira Orlina. Malou Dizon. whether or not for just or authorized cause but without prior notice of his termination. is
entitled to full baekwages from the time he was terminated until the decision in his case becomes final. Rosalina Juliet Loquellano. the aforecited doctrine laid
down in the Serrano case applies.
The petitioners filed their motion for reconsideration. v NLRC et al. G. to wit:
In Ruben Serrano v. Rebecca Fajardo.

et al. there must be a prior showing that they had participated in the
illegal strike before they could be terminated from employment. No. that the CA erred in selectively applying the twin notice
requirement. v NLRC et al. that their participation in the concerted activities out of their sincere belief that
. as. if any.R. petitioners Carmina C.HSBC Employees Union. that in the case of the Union officers. and the same cannot
negate good faith
C
The Court of Appeals committed grave error in concluding that this Court had already ruled on the
validity of the implementation of the Job Evaluation Program and no longer considered the evidence
presented by petitioners to establish unfair labor practice on the part of the HSBC
D
The doctrine automatically making a strike illegal due to non-compliance with the mandatory
procedural requirements needs to be revisited
The petitioners argue that they were illegally dismissed. 156635 6 of 16
employees
C
The HSBC is liable for damages for having acted in utter bad faith by dismissing the petitioners after
having previously submitted the dispute to the NLRC
D
Union officers who did not knowingly participate in the strike do not lose their employment status
E
The responsibility for illegal acts committed in the course of a strike is individual and not collective
F
The January 5. that they
could not be dismissed on the ground of insubordination or abandonment in view of participation in a concerted
action being a guaranteed right. but that HSBC did not make such showing. Fermin were on leave during the period of the strike. imposable on union officers should be suspension and not dismissal
II
THE COURT OF APPEALS COMMITTED SERIOUS ERROR OF LAW IN HOLDING THAT THE
STRIKE WAS ILLEGAL
A
The test of good faith laid down by this Honorable Court is whether the union is of the reasonable
belief that the management was committing an unfair labor practice
B
The decision as to when to declare the strike is wholly dependent on the union. G. Rivera and Mario T. in
fact. 1994 incident does not warrant the dismissal of the petitioners involved thereat
G
The penalty.

they were entitled only to
nominal damages.:
Article 263. not the extreme penalty of dismissal. that good faith could not be accorded to the petitioners
because aside from the non-compliance with the mandatory procedure. National Labor Relations Commission that
meanwhile modified the doctrine in Serrano v. and lockouts. which seeks to advance their
right to improve the terms and conditions of their employment. namely: (1) whether the strike commenced on December 22.HSBC Employees Union. (d) and (f). is recognized as an effective weapon of labor in
their struggle for a decent existence.
HSBC counters that the appeal raises factual issues already settled by the CA. that
their actions merited only their suspension at most.
Article 263 of the Labor Code specifies the limitations on the exercise of the right to strike. in case of dismissal from employment
of union officers duly elected in accordance with the union constitution and by-laws. However. the right to strike as a means for the attainment of social justice is
never meant to oppress or destroy the employers. they did not present proof to show that the
strike had been held for a lawful purpose. that for this reason Article 264 penalized the Union officers who had participated
in the illegal strike with loss of their employment status. G. rendering such
issues inappropriate for determination in this appeal. picketing. NLRC.
I
Non-compliance with Article 263 of the
Labor Code renders a labor strike illegal
The right to strike is a constitutional and legal right of all workers because the strike. In cases of unfair labor practices. and that the prevailing
rule that non-compliance with the procedural requirements under the Labor Code before staging a strike would
invalidate the strike should be revisited because the amendment under Batas Pambansa Blg. Thus. 1993
was lawfully conducted. not backwages. However. the period of notice shall be 15 days and in the
absence of a duly certified or recognized bargaining agent.
that the procedural requirements of Article 263 of the Labor Code were mandatory and indispensable conformably
with Article 264 of the Labor Code. or that the JEP had amounted to ULP. and the LA.R.
. 227 indicated the
legislative intent to ease the restriction on the right to strike. et al. or that they had made a sincere
effort to settle the disagreement. which may
constitute union busting. the notice of strike may be filed by any
legitimate labor organization in behalf of its members. the duly certified or recognized bargaining agent may file a notice
of strike or the employers may file a notice of lockout with the [Department] at least 30 days before the
intended date thereof. National Labor Relations Commission. that it was not liable for illegal dismissal because the
petitioners had willfully staged their illegal strike without prior compliance with Article 263 of the Labor Code. therefore. which. 156635 7 of 16
HSBC had committed ULP in implementing the JEP constituted good faith to be appreciated in their favor. v NLRC et al. x x x
xxxx
(c) In cases of bargaining deadlocks. and (2 whether the petitioners were illegally dismissed. No. where the existence of the union is threatened. and that as far as the 18 employees were concerned. in relation to Article 263(c). viz. following the ruling in Agabon v.
Ruling of the Court
We PARTLY GRANT the petition for review on certiorari. expressly made such non-
compliance a prohibited activity. the 15-day cooling off period
shall not apply and the union may take action immediately. the law prescribes limits on the exercise of the right to
strike.
Two main issues to be resolved are. Strikes.

R. nor observed the cooling-off
period. therefore. at its
own initiative or upon request of any affected party. although the strike vote was conducted. et al. obtained by secret ballot in meetings or referenda called for that purpose. obtained by secret ballot in a
meeting called for that purpose. Verba legis non est
. These requirements are mandatory. not secret. Should the dispute remain unsettled until
the lapse of the requisite number of clays from the mandatory filing of the notice. or 15 days in case of ULP.
xxxx
The procedural requirements for a valid strike are. subject to the cooling-off period herein provided. in blatant violation of Article 263 and Section 7. the following. The [Department] may. supervise the conduct of the secret balloting. the petitioners committed a prohibited activity under
Article 264(a) of the Labor Code. In
every case.HSBC Employees Union. and rendered their strike illegal. the petitioners neither filed the notice of strike with the DOLE.
(f) A decision to declare a strike must be approved by a majority of the total union membership in the
bargaining unit concerned. G.
We underscore that the language of the law itself unmistakably bears out the mandatory character of the limitations
it has prescribed. (emphasis
supplied)
xxxx
Accordingly. It is not amiss to observe that the evident intention of the requirements for the
strike-notice and the strike-vote report is to reasonably regulate the right to strike for the attainment of the
legitimate policy objectives embodied in the law. The decision shall be valid for the duration of the dispute based on substantially
the same grounds considered when the strike or lockout vote was taken. (2) a strike vote approved
by the majority of the total union membership in the bargaining unit concerned. the union or the employer shall furnish the [Department] the results of the voting at least
seven days before the intended strike or lockout. . the labor union may
strike or the employer may declare a lockout. the same was
done by open.
(e) During the cooling-off period. Prohibited activities. Moreover. balloting.
According to the CA. A
decision to declare a lockout must be approved by a majority of the board of directors of the
corporation or association or of the partners in a partnership. and (3) a notice of the results of the voting at least seven days before the intended
strike given to the DOLE. 264. nor submitted the result of the strike vote. 156635 8 of 16
(d) The notice must be in accordance with such implementing rules and regulations as the [Secretary]
of Labor and Employment may promulgate. Rule XIII of the Omnibus
Rules Implementing the Labor Code. such that non-compliance therewith by the union
will render the strike illegal. it shall be the duty of the [Department] to exert all efforts at
mediation and conciliation to effect a voluntary settlement. obtained by secret ballot in a meeting
called for that purpose. It is significant to remind that the doctrine has
not been established by judicial declaration but by congressional enactment. As such. No.(a) No labor organization or employer shall declare a strike or
lockout without first having bargained collectively in accordance with Title VII of this Book or
without first having filed the notice required in the preceding Article or without the necessary
strike or lockout vote first having been obtained and reported to the [Department]. v NLRC et al. to wit: (1) a notice of strike filed with
the DOLE at least 30 days before the intended date thereof. the petitioners' plea for the revisit of the doctrine to the effect that the compliance with
Article 263 was mandatory was entirely unwarranted. to wit:
Art.

for all the affidavits and testimonies of its
witnesses. Specifically. violence and intimidation committed by the petitioners during their picketing. have demonstrated an abnormally high
degree of hatred and anger at the Bank and its officers (including the Bank's chief executive
officer who fell to the ground as a result of the pushing and shoving) leading them to do anything
to carry out their resolve not to let anymore inside the Bank. when accompanied by intimidation. as observed by this
Labor Arbiter. In this connection. Had the legislators' intention been to
relax this restriction on the right of labor to engage in concerted activities. which has been
viewed several times during the trial and even privately. plain and free from ambiguity. It was undeniable that
such acts of the strikers forced HSBC's officers to resort to unusual means of gaining access into its premises at
one point. when they are clear. Although the Constitution recognized and promoted their right to strike. v NLRC et al.
For sure. Those bounds had been well-defined and well-known.
(Emphasis supplied)
The situation during the strike actually went out of hand because of the petitioners' illegal conduct.
The contrary was undeniably true. 1993 the petitioners had on several instances obstructed the
ingress into and egress from its offices in Makati and in Pasig was not competently disputed. They deny
employing any act of violence or obstruction of HSBC's entry and exit points during the period of the strike. The strike was far from orderly and peaceful. G. or from obstructing public thoroughfares. and moving picket.
Moreover.HSBC Employees Union. et al. Additionally. stationary one . as well as the photographs and the video recordings reviewed by LA Pati depicted the acts of
obstruction. 156635 9 of 16
recedendum. coercion or intimidation.
Article 264(e) of the Labor Code expressly enjoined the striking workers engaged in picketing from committing
any act of violence. The words of a statute. The employment of prohibited means in
carrying out concerted actions injurious to the right to property of others could only render their strike illegal. HSBC's claim that from the time
when the strike was commenced on December 22. The incident depicted in the video footage of 05 January 1994.
II
Commission of unlawful acts during
the strike further rendered the same illegal
The petitioners insist that all they did was to conduct an orderly. they should still
exercise the right within the bounds of law. LA Pati even observed as follows:
[I]t must be pointed out that the Bank has shown by clear and indubitable evidence that most of the
respondents have actually violated the prescription provided for in paragraph (b) of Article 264 on free
ingress and egress. demonstrates beyond doubt that the picket
was a non-moving.R.nothing less but a barricade. and at one point to lease an helicopter to extract its employees
and officers from its premises on the eve of Christmas Day of 1993. they would have stated so
plainly and unequivocally. and should thus be
accorded credence in the light of the records. at least on that day. This office is more than
convinced that the respondents. No. compelling
HSBC to secure an injunction from the NLRC as well as to file its petition for habeas corpus in the proper court in
the interest of its trapped officers and employees. must be given
their literal meaning and must be applied without interpretation. peaceful. the petitioners could not justify their illegal strike by invoking the constitutional right of labor to
concerted actions.
. the tensed and disquieting relation between the parties became all the more apparent
during the actual hearings as clearly evident from the demeanor and actuations of the respondents. their strike was rendered unlawful because their picketing which constituted an obstruction to the free
use of the employer's property or the comfortable enjoyment of life or property. We agree with HSBC. or from obstructing the free ingress into or egress from the employer's
premises for lawful purposes.

et al. The relevant portion of the CA Decision states:
xxx We cannot go to the extent of ascribing good faith to the means taken in
conducting the strike. For their claim to be upheld. Observe the cooling period. the union cannot claim
good faith in the conduct of the strike because. Consequently. They had also hoped that HSBC would be willing to
negotiate matters related to the JEP considering that the economic aspect of the CBA was set to expire on March
31. If
the act is union busting.
subject only to the seven-day strike ban. the strike. 1993. 3. they failed to do so. this was an extensively coordinated strike having been conducted
all throughout the offices of PILTEL all over the country. violence. Inc. 3. In fine. Pilipino Telephone Employees Association (PILTEA):
[W]e do not find any reason to deviate from our rulings in Gold City Integrated Port Service. especially when the means came within the
prohibitions under Article 264(e) of the Labor Code:
III
Good faith did not avail because of the
patent violation of Article 263 of the Labor Code
The petitioners assert their good faith by maintaining that their strike was conducted out of their sincere belief that
HSBC had committed ULP in implementing the JEP. It bears emphasis that the strike staged by the Union in the instant case
was illegal for its procedural infirmities and for defiance of the Secretary's assumption order. for
they must also sufficiently show that the strike was undertaken with a modicum of obeisance to the restrictions on
their exercise of the right to strike prior to and during its execution as prescribed by the law. Give a Notice of
Strike. Evidently. Here. No. v NLRC et al. 2. and coercion as to constitute nuisance. they cannot now come to court hiding behind the shield of "good faith. which.R.
The petitioners should entirely bear the consequence of their non-compliance with the legal requirements. that is—1. Observe the mandatory seven day strike ban. then the union may strike doing away with the cooling-off period.
The petitioners' disregard of the procedural requirements for conducting a valid strike negated their claim of good
faith. and
Nissan Motors Philippines. as can be gleaned from the findings of
the Labor Arbiter. Inc. could become illegal because of the means employed. a strike must simply have a lawful
purpose and should be executed through lawful means. in this case. they still had to comply with the
procedural requirements for a strike. the strike was
planned. it was not enough for them to believe that their employer was guilty of ULP. should be regulated. 156635 10 of 16
threats. even if justified as
to its ends. petitioners claim good faith only in so far as their grounds for the strike
but not on the conduct of the strike."
Be that as it may. The CA. As we
said in Pilipino Telephone Corporation v. G. They did not establish
their compliance with the requirements specifically for the holding of the strike vote and the giving of the strike
notice.HSBC Employees Union. The requirement of the law is simple.
the NLRC and the Labor Arbiter were unanimous in finding that bad faith existed in the conduct of the
subject strike.
IV
The finding on the illegal strike did not justify the
wholesale termination of the strikers from employment
.
We rule out good faith on the part of the petitioners. Verily. To be lawful.

The petitioners assert that the CA erroneously affirmed the dismissal of Carmina Rivera and Mario Fermin by
virtue of their being officers of the Union despite lack of proof of their having participated in the strike. G. which did not
discharge its burden. Fermin. v. we need to distinguish between the officers and the members of the union who
participate in an illegal strike. Dalisay dela Chica testified that Fermin was not around when
the Union's Board met after the strike vote to agree on the date of the strike. but the members of the union shall suffer the same fate only if they
are shown to have knowingly participated in the commission of illegal acts during the strike. To avoid rendering the recognition of the workers' right to strike illusory." This reflects the intent of the
legislature to require "knowledge" as a condition sine qua non before a union officer can be dismissed
from employment for participating in an illegal strike. confirmed the Union president's testimony by attesting that her husband had been on leave from work prior
to and during the strike because of his heart condition. Any union officer who knowingly participates in an
illegal strike and any worker or union officer who knowingly participates in the commission of
illegal acts during a strike may be declared to have lost his employment status: Provided. much less identify him as
among the strikers.
However. No. thusly:
Note that the verb "participates" is preceded by the adverb "knowingly. Although Corazon also attested that her husband had fully
supported the strike. Dalisay dela Chica. Bautista. the
responsibility for the illegal strike is individual instead of collective. This is but one aspect of the State's constitutional and
statutory mandate to protect the rights of employees to self-organization. should not be deemed to have lost his
employment status. Corazon Fermin. even if a replacement had been hired by the employer during such lawful strike. Article 264 expressly
requires that the officer must have knowingly participated in the illegal strike. 156635 11 of 16
The next issue to resolve is whether or not HSBC lawfully dismissed the petitioners for joining the illegal strike. In contrast. Marvilon
. et al. HSBC did not satisfactorily prove his presence during the strike. The
burden of proving the overt participation in the illegal strike by Fermin solely belonged to HSBC. his
widow. the dismissal of Rivera and of the rest of the Union's officers. v NLRC et al. Accordingly. Inc. The provision is worded in such a way as to
make it very difficult for employers to circumvent the law by arbitrarily dismissing employees in the
guise of exercising management prerogative. namely: Ma. viz.HSBC Employees Union.
The assertion is partly correct.:
Article 264. That
mere participation of a worker in a lawful strike shall not constitute sufficient ground for termination of
his employment. In that regard.
In the case of Fermin.R. Union president Ma. the mere finding of the illegality of the strike does not justify the wholesale termination of the
strikers from their employment. albeit an officer of the Union. We have explained this essential
element in Club Filipino. The last paragraph of Article 264(a) of the
Labor Code defines the norm for terminating the workers participating in an illegal strike. Prohibited Activities -xxx
xxxx
Any worker whose employment has been terminated as a consequence of any unlawful lockout shall be
entitled to reinstatement with full backwages. his extending moral support for the strikers did not constitute sufficient proof of his
participation in the strike in the absence of a showing of any overt participation by him in the illegal strike. The officers may be deemed terminated from their employment upon a finding of
their knowing participation in the illegal strike.
As a general rule.
(emphasis supplied)
Conformably with Article 264.

These respondents took a risk when they refused to heed
complainant's lawful order and knowingly caused damage and prejudice to complainant's operations. the dismissal of the members could be upheld
only upon proof that they had committed illegal acts during the strike. including Fagutao and Union officer Fermin. substantial evidence
available under the attendant circumstances justifying the penalty of dismissal sufficed. the order must be: (1) reasonable and lawful. Specifically. We can not simply
ignore the fact that they nonetheless breached complainant's rules and regulations and which acts serve
as valid causes to terminate their employment. They must be specifically identified because
the liability for the prohibited acts was determined on an individual basis. In addition.
Unlike the Union's officers. the mere expediency of issuing the return to work
memorandum could suffice to stifle the constitutional right of labor to concerted actions. When said officers urged and made their members
violate the law. which is prohibited under Article 264(c) of the Labor Code.
We declare the illegality of the termination of the employment of the 18 members of the Union for failure of HSBC
to prove that they had committed illegal acts during the strike. namely: (1) the failure to report for work or absence
. Any worker who joined the strike did so precisely to assert or
improve the terms and conditions of his work. their dismissal became an appropriate penalty for their unlawful act.HSBC Employees Union. two requirements need to be established. v NLRC et al. The law granted to HSBC the
option to dismiss the officers as a matter of right and prerogative. Thus. 1993. G. For that purpose. et al. Regardless of whether the strike was illegal or not.
Although these 18 respondents did not commit any illegal act during the strike.R. To Our mind. Whether or
not complainant observed due process prior to the termination of these respondents is however a totally
different matter.
For insubordination to exist. the complainant in
the exercise of its management prerogative.
As to abandonment. and for deprivation of procedural due process. Rivera admitted joining the picket line on a few occasions. is upheld. We also declare that Daisy Fagutao was unlawfully
dismissed because HSBC did not adduce substantial evidence establishing her presence and her commission of
unlawful acts during the strike.
and (3) in connection to his duties.
We hold that said employees' right to exercise their right to concerted activities should not be defeated by the
directive of HSBC for them to report back to work. Dela Chica. had every reason to discipline these respondents for their
disregard of the complainant's return-to-work order and for the damage sustained by reason thereof. the grounds for their
termination were enumerated in the notices of termination sent out by complainant as follows:
abandonment.
the Union president. had instigated and called for the strike on December 22. 156635 12 of 16
Militante and David Atanacio. we take exception to
that portion of the NLRC ruling that held:
We here note that all of the herein named respondents were terminated by complainant for reasons
other than their holding of an participation in the illegal strike. None of these elements existed in this case.
We clarify that the 18 employees. Such practice would vest
in the employer the functions of a strike breaker. Otherwise. the ordinary striking members could not be terminated for merely taking part in the
illegal strike.
they should be prepared to take the consequences and be held accountable for their actions. HSBC identified
Dela Chica and Militante as having actively participated in the strike. insubordination and seriously hampering operations. No.
The petitioners' refusal to leave their cause against HSBC constituted neither insubordination nor abandonment. Their responsibility as the officers of the
Union who led the illegal strike was greater than the responsibility of the members simply because the former had
the duty to guide their members to obey and respect the law. (2) sufficiently known to the employee. were illegally dismissed because of
lack of any valid ground to dismiss them.

Moreover. However. the petitioners unquestionably had no intention to sever
the employer-employee relationship because they would not have gone to the trouble of joining the strike had their
purpose been to abandon their employment. even if
the cause therefor was their supposed involvement in strike-related violence prohibited under Art. the employer's liability
depended on the availing circumstances
While Article 264 authorizes the termination of the union officers and employees.
the foregoing standards of due process apply to the termination of employment of Suico. we have reiterated the need for the employers to comply with the twin-notice requirement despite the
cause for the termination arising from the commission of the acts prohibited by Article 264. failure of the employer to accord due process to its employees prior to their termination results in
illegal dismissal. it does not remove from the
employees their right to due process. claiming instead that the award of backwages in favor of said employees should be modified following
Agabon. we cannot subscribe to the view that the striking employees should be dismissed for having seriously
hampered and damaged HSBC's operations.
Consequently. National Labor Relations
Commission. thus:
Art. Miscellaneous Provisions. v NLRC et al. The second element is the more decisive factor and must be manifested by overt acts. Hence. G. 264
(a) and (e). 277(b) in relation to Art. the employees remain entitled to
an opportunity to explain their conduct and why they should not be penalized. In Suico v. viz. HSBC did not discharge its burden to prove
that the acts of the employees constituted any of the just causes under the Labor Code or were prohibited under the
company's code of conduct as to warrant their dismissal.
We partially agree with both parties. HSBC
disagrees.
The petitioners maintain that the CA applied the twin-notice requirement in favor of the 18 employees. the employer shall furnish the worker whose employment is
sought to be terminated a written notice containing a statement of the causes for termination and
shall afford the latter ample opportunity to be heard and to defend himself with the assistance of
. In that regard. none is construed.HSBC Employees Union.R. -
xxxx
(b) Subject to the constitutional right of workers to security of tenure and their right to be protected
against dismissal except for a just and authorized cause and without prejudice to the requirement of
notice under Article 283 of this Code. and (2) there must be a clear intention to sever the employer-employee
relationship.
V
Non-compliance with due process resulted
in illegal dismissal. without
distinction as to the cause of their termination. No.:
Article 277. Where no distinction is given.
the employer carries the burden of proof to show the employee's deliberate and unjustified refusal to resume his
employment without any intention of returning. et al. Regardless of their actions during the strike.
Article 277(b) of the Labor Code mandates compliance with the twin-notice requirement in terminating an
employee. et al. 264(a) and (e) recognizes the right to due process of all workers. In this aspect of the case. 156635 13 of 16
must be without valid or justifiable reason.

The first notice.
Should you fail to report back for work within the period abovestated. "Reasonable opportunity" under the Omnibus
Rules means every kind of assistance that management must accord to the employees to enable them to
prepare adequately for their defense. It also thereby deprived them the ample opportunity to explain and justify their actions.
1993. 282 is being charged against the employees. G. you "walked-out" by leaving
your assigned work station without prior permission/leave during work hours. (Emphasis supplied)
HSBC admitted issuing two pro forma notices to the striking employees. Inc. and (2) grounds have been established to
justify the severance of their employment. if any. 156635 14 of 16
his representative.
You arc hereby directed to report back for work at the start of banking hours on the day
immediately following knowledge or receipt of this notice.HSBC Employees Union. as follows:
(1) The first written notice to be served on the employees should contain the specific causes or grounds
for termination against them. Plainly. Should you report for work no
disciplinary action shall be imposed on you.
The second notice was as follows:
Re: NOTICE OF TERMINATION
. Ibis is without prejudice to any action the Bank may take
against the Union. x x x (Emphasis supplied)
In King of Kings Transport. the tenor of the notice was short of the requirements of a valid first notice. we have laid down the contents of the notices to be served upon an
employee prior to termination. Moreover. and decide on the defenses they will
raise against the complaint. reads as follows:
Re: NOTICE OF RETURN TO WORK
On ___________________ at ________ o'clock in the morning/afternoon. consult a union official or lawyer. This should be construed as a period of at least five (5) calendar
days from receipt of the notice to give the employees an opportunity to study the accusation against
them. No.
As the notice indicates. are
violated and/or which among the grounds under Art. HSBC did not fully apprise the strikers of the ground under the Labor Code that they had
supposedly violated. the notice should specifically mention which company rules. et al. gather data and evidence. the employers shall serve the
employees a written notice of termination indicating that: (1) all circumstances involving the
charge against the employees have been considered. in order to enable the employees to intelligently prepare their
explanation and defenses. Mamac. and a directive that the employees are given the opportunity to submit
their written explanation within a reasonable period. Lastly. A general description of the charge will
not suffice. the notice should contain a detailed narration of the facts and circumstances
that will serve as basis for the charge against the employees.
Instead. the Bank shall be forced to
terminate your employment and take all appropriate measures to continue serving its clients. v. in accordance with company rules and regulations promulgated
pursuant to guidelines set by the Department of Labor and Employment. sent on December 22. v NLRC et al.
xxxx
(3) After determining that termination of employment is justified.R. if he so desires. it manifested therein its firm resolve to impose the extreme penalty of termination should they not comply
with the order.

you have failed to comply.
You were directed to report back for work when a copy of the Bank's Memorandum/Notice to Return
to Work dated________________ 1993 was:
1.
We disagree. Antonio del Rosario. Manuel Herrera.000. this notice should be struck down for having violated the right of the affected
employees to due process.HSBC Employees Union. while the other was based on a valid cause but lacked compliance with procedural due
process. and other benefits or their monetary equivalent
computed from the time the compensation was withheld up to the time of actual reinstatement. not the first type to which the 18 employees belonged. Fermin who did
not participate in the strike.
while petitioners Isabelo Molo. while the second type included the rest of the petitioners. no baekwages during
the strike shall be awarded. et al. the lapse of 22 years since the strike now warrants the award of separation pay in lieu of
reinstatement.
The failure by HSBC to strictly observe the twin-notice requirement resulted in the illegal dismissal.
In Agabon. were entitled to baekwages except during the period of the
strike. [ ] Posted on the Bank's premises on_______________
2. [ ] served on your (sic) personally on____________________. the
extent of its liability should depend on the distinct circumstances of the employees.
Rosalina Juliet Loquellano.
Your "walk-out" is an illegal act amounting to abandonment.
The rule for employees unlawfully terminated without substantive and procedural due process is to entitle them to
the reliefs provided under Article 279 of the Labor Code. 1993. To the first type belonged the dismissal of Fermin. we said that a dismissal based either on a just or authorized cause but effected without due process
should be upheld. should be paid full baekwages plus separation pay of one (1) month per year of service. G. who admitted their participation in the strike.
The second notice merely ratified the hasty and unilateral decision to terminate the petitioners without the benefit
of a notice and hearing. Accordingly. Mercedes Paule.
. Rebecca Fajardo.R. insubordination. you and a majority of the rank-and-file staff "walked out" by leaving your
respective work stations without prior leave and failed to return.00. [ ] delivered to your last known address on file with the Bank and received by you (your
representative) on
Despite being directed to return to work.
As regards reinstatement.
3. Blanche Motus. the award
of baekwages is subject to the settled policy that when employees voluntarily go on strike. Fagutao and the 18 employees initially identified by
the NLRC.
HSBC maintains that the dismissed 18 employees should not be entitled to backwages in conformity with Agabon. inclusive of allowances. However. Samuel Ellarma. the same to be equivalent of one (1) month for every year of service. Agabon involved the second type of dismissal. and to separation pay of one (1) month per year of service in lieu of reinstatement. v NLRC et al. Melo Gaba. that is. reinstatement without loss of seniority rights and
other privileges and to his full backwages. and seriously hampering
and damaging the bank's operations. your employment with the Bank is terminated
effective ____________________. 1993. Nelia Deriada. Consequently. Hence.
HSBC should be held liable for two types of illegal dismissal — the first type was made without both substantive
and procedural due process. No. 156635 15 of 16
On_________ . The employer should be nonetheless liable for non-compliance with procedural due process by
paying indemnity in the form of nominal damages amounting to P30. Maida Militante and Daisy
Fagutao. However.